Dáil Éireann Debate, Wednesday - 12 October 2005
215 Mr. Deenihan asked the Minister for Finance if he will extend the July 2006 deadline for the completion of qualifying hotel projects in respect of the current tax incentive schemes; and if he will make a statement on the matter. [28205/05]
Amharc ar fhreagraAs the Deputy is aware I announced in my 2005 Budget Statement that I had directed my Department, together with the Revenue Commissioners, to undertake a detailed review of various property tax reliefs and exemptions. These reliefs include the tax incentive for hotels. As these are being prepared in the context of forthcoming budgets, it would not be appropriate to comment further at this stage.
216 Mr. N. O’Keeffe asked the Minister for Finance if he will consider in the context of budget 2006 exempting old age pensioners from payment of VAT on piped gas in view of the recent increase in the cost of same. [28206/05]
Amharc ar fhreagraThe position is that the rate of VAT that applies to a particular good or service is determined by the nature of the good or service, and not by the status of the customer. The VAT rating of goods and services is subject to the requirements of EU VAT law with which Irish VAT law must comply. There is no provision in European VAT law that would allow the application of an exemption from VAT for supplies to old age pensioners.
However, under the social welfare code, the household benefits package, which comprises the electricity-gas allowance, telephone allowance and free lifetime television licence is available to people living permanently in the State. People aged over 70 years of age can qualify regardless of their income or household composition. The package is also available to carers. Customers under the age of 70 who are in receipt of a qualifying payment and live alone or only with certain categories of people may also have an entitlement to the package. For those customers aged between 66 and 69 years and who are not in receipt of a qualifying payment, a means test must be satisfied to determine eligibility for the package.
The electricity allowance covers the normal standing charge and up to 1,800 units of electricity each year. At current prices, the value of the electricity allowance to the consumer is approximately €339 per annum for urban dwellers, and €381 for rural dwellers, inclusive of VAT at 13.5%. An electricity group account allowance may be paid if a customer lives in self-contained accommodation and operates an electricity slot meter or where the registered consumer of electricity is the landlord. Payment is made by way of 12 vouchers at an annual value of €360, inclusive of VAT at 13.5%.
Alternatively, if the natural gas allowance option is selected, the customer is entitled to the supply charge and up to 1,674 kwh of gas per year. The annual value of this is up to €313 per annum inclusive of VAT at 13.5%. If the person's home is not connected to an electricity or natural gas supply, the person is entitled to 15 cylinders of bottled gas per annum at an annual value of approximately €320 inclusive of VAT at 13.5%.
The telephone allowance is paid as a credit on the customer's telephone bill. The value of the allowance is €24.70 per month, including VAT, or €296.40 per annum.
